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Microsoft Exiting Smartphones, Closes Most Activities in Finland

by Ville-Petteri Ukonaho | May 25, 2016

25.5.2016 Microsoft held a announcement at Espoo concerning the development and manufacturing of handsets globally. During the event Microsoft announced plans to streamline the company’s smartphone hardware business, which will impact up to 1,850 jobs. Microsoft anticipates this will result in the reduction of up to 1,350 jobs at Microsoft Mobile Oy in Finland, as well as up to 500 additional jobs globally.

It comes as no surprise that Microsoft is putting a stop to the struggling handset business. Earlier in May it announced of the sales of its featurephone business to two companies HMD Global and FIH. This announcement is just a logical continuation of MIcrosofts efforts to get rid of the money losing unit it purchased from Nokia 2014. In Finland this means an end to the mobile phone business Nokia started over two decades ago.

Microsoft share in smartphones has been is steep decline ever since Microsoft took control of the Nokia mobile phone unit. Current global market share stands below 1% as can be seen from this latest Global Smartphone Vendor Market Share by Region: Q1 2016 report.

Microsoft confirmed continuation of support for existing Windows Phones, and continuation of the development of the Windows 10 Mobile platform, but did not declare who will be the hardware partners in the future.

The announcement solidifies the persistent rumors about the future of mobile in Microsoft being under Surface as Lumia development comes to an end.
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